Question

Paid cash to Pawan, 4,700. and discount received from him, 300. 25, Sold goods to Varun of the list price of ₹ 25,000 at 20% trade discount
journal entry

Answer 1

Working notes :-

list price = 25,000

trade Discount = 20%

trade Discount = 25,000 x 20%

= 5,000

Sales = 25,000 - 5,000 = 20,000

Answer 2

Answer:

Explanation:

DATE        PARTICULARS      L.F       DEBIT AMT      CREDIT AMT

1                PAWAN   A/C   DR                  5,000

                          TO CASH A/C                                          4,700

                   TO DISCOUNT A/C                                          300

              ( PAID CASH TO PAWAN AND

             RECEIVED DISCOUNT 300 )

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2                VARUN  A/C   DR                  20,000

                        TO SALES A/C                                               20,000

                ( SOLD GOODS TO VARUN

                  @ A TRADE DISCOUNT OF 20%)

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